Coin vs Token: What is the Difference? (Simple Guide for Crypto Beginners)
If you are new to the crypto world, you may have heard of “coin” and “token”. Both are digital assets, but there is a basic and important difference between them. Let's understand in simple language:
1. What is Coin?
Coin is a cryptocurrency that exists on its own blockchain.
Examples:
Bitcoin (BTC) – on the Bitcoin blockchain.
Ethereum (ETH) – on the Ethereum blockchain.
BNB – BNB Chain (formerly Binance Smart Chain).
Use:
Coin is mainly used to transfer value, store or pay for a service.
2. What is a Token?
A Token is a digital asset built on another blockchain. Such as ERC-20 tokens on Ethereum, or BEP-20 tokens on BNB Chain.
Examples:
Shiba Inu (SHIB) – on Ethereum.
PancakeSwap (CAKE) – on BNB Chain.
USDT (Tether) – on Multiple blockchains (Ethereum, Tron, BNB Chain etc.).
Use:
Tokens are used: within dApps, governance voting, utility features or as stablecoins.
Coin vs Token — A Simple Table:
Feature Coin Token
Blockchain uses its own blockchain
Example BTC, ETH, BNB SHIB, CAKE, USDT
Use Case Payment, transfer, staking Utility, governance, stablecoin
Final Thought:
Think coin is a highway, and token is a car running on that highway. Both are important for the crypto ecosystem, just their role is slightly different.
This is just an educational post. Do your research before taking an investment decision.
